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Wednesday, November 30, 2011

Blogging and Self Promotion

I have been blogging off and on now for about 7 years.   In the early days, I primarily started blogging because that was the advice being given by the National Association of Realtors.   I found that it could be quite time consuming and it was unclear to me how big the payoff was.   With literally millions of blogs, and perhaps tens of thousands if not hundreds of thousands of blogs on real estate, it was very unlikely that anyone would be finding me on-line. 

With that realization, I had a change of strategy.  Instead of writing to the public at large, I tried to write to a more focused audience.   My intended audience was commercial real estate in the Louisville, KY area.    This helped somewhat but again, it was very unlikely that someone would find my blog by googling anything associated with commercial real estate.   So I began to write pieces on commercial real estate in general, on my specific listings and on things in Louisville in general.   This allowed me to have marketing pieces available for people on-line which I could also print out for prospects when I had meetings with them.    There was some minimal action from search engines but I was able to direct my messages to my target audience.    

This year, I had a surprise when my readership surged in the Spring peaking in April with nearly 60 times the number of readers I had ever had.  I later discovered that Google had changed their search engine criteria to put more emphasis on blogs.   But I also discovered in looking at the numbers that my numbers increased noticably when the number of articles increased.  That may seem obvious but before this time, there was no consistency in the readership.

This led me to an experiment.  I decided to make more consistent efforts at adding blog entries and also began to make efforts to promote the blog.  I also decided to broaden my topics to include other issues that are at least tangential to commercial real estate and also began to include some more personal notes about topics of interest to me.   To my surprise, by doing this the readership of my blog has been increasing every month since August.  In November, I had nearly a 50% increase in readership over October. 

I still have to consider the cost / benefit ratio in the amount of time I dedicate to these efforts but for now the experiment will continue.   The next step will be to consider how this might translate into contributing toward the bottom line and determine how I can measure those results.

Anyway, thanks so much for reading.   Hope you have a great day!

BTW - Speaking of results, if would would like to discuss the best way to have results on your real estate issues, give me a call.  I specialize in Commercial Real Estate and work with Sellers, Buyers, Landlords, Tenants and Investors.   I handle Office, Industrial, Land, Retail and Investment properties.   Heck, I can even hook you up with someone if you need help in residential real estate.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

Tuesday, November 22, 2011

Super Committee Fail?

The deadline for the Super Committee to come up with 1.2 Trillion in budget cuts has passed without a deal.    While pundits are berating the committee and politics in general and the markets are reacting negatively, I believe that the winners in this entire process are the American people.

Who seriously believed that we would face any other outcome?    As soon as the committee was formed, several of the members immediately changed the goal from coming up with 1.2 Trillion in cuts to increasing taxes so that the cuts would not have to be made.   One member reportedly even proposed counting the "savings" from no longer being at war in Iraq as budget savings in order to avoid any serious cuts at all.   

Having a son who is a soldier, I have to admit, I am not exactly happy with what the automatic cuts are going toward.   Still, the reality of the situation is that no matter what is cut, someone is going to be unhappy.   And while we are hearing of doom and gloom, you have to remember that these cuts are over a 10 year period.   The reality of the situation is that the amounts left are not too far off from the budget amounts these same categories had just a couple of years ago.

I don't know about you but my family has not only had to manage without an increase for the last several years, we have had to cut back tremendously.  We all know that this is possible.  Yet somehow when Federal Government expenditures do not go up, the headlines indicate that we have a catastrophe.  

The truth is that given the politics of the situation, there is no politically viable way to make any real cuts in the budget.   If you doubt this, simply look  back at the budget impasse of the summer.   For all of the complaints and finger pointing at how unreasonable those wanting cuts were, they only managed about $7 Billion in cuts on the budget.  And while $7 Billion is a lot of money, it is a miniscule amout relative to the entire Federal budget.    (making me wonder, who really was unreasonable) 

The automatic cuts are not everything we need but it is a badly needed start.  

Just my opinion. 

BTW - If you need an opinion on Real Estate, give me a call.  I specialize in Commercial Real Estate and work with Landlords, Tenants, Buyers, Sellers and Investors.  I handle Office, Industrial, Land, Investment and Retail properties.   Heck, I can even hook you up on residential real estate.  Give me a call if you need help.

ALSO - I am sure that my managing broker would appreciate me noting that these opinions are my own and do not necessarily represent the opinions of Commonwealth Commercial Real Estate, its brokers, agents, or employees (other than me or not).  Readers are welcome to make comments and are welcome to disagree.  What is not welcome is inappropriate or offensive comments.  Should there be any such comments, I will delete them.

Have a great day, all!  

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY

Friday, November 18, 2011

Time to Revamp Minimum Wage Laws?

We are being innundated with bad economic news:  Budget problems, tax problems, and reportedly a historically high poverty rate in our country.   On the budget side, some are claiming that we simply do not get enough taxes from the wealthy and if only we increased their taxes, everything would be okay.   On the tax front, we are being told that the current tax system is really the problem and that perhaps a revamp of the tax code to a single tax rate is in order.  And finally we are told that the problem is the wages and that we need to focus on changes to eliminate poverty.

So why isn't the obvious solution raising the minimum wage to $250,000 per year?   Overnight everyone in America is wealthy and by default we go to a single tax rate tax system and everyone pays there fair share.  Budget Balanced.   Poverty Eliminated.  Tax Fairness Achieved.   Problem Solved.    Right? ...

Right now, you are probably thinking, "What an idiot!  There is no way that could work."   And you are right.   If we passed a law like that, we would cause huge economic turmoil.  Overnight, businesses would have to either raise prices outrageously in order to pay their employees or perhaps fire as many people as possible or declare bankruptcy.    We could expect hyperinflation, hyper unemployment or perhaps both.   AND it is also very unlikely to improve the wealth distribution in America in a positive way at all.

It is unclear what having a minimum wage accomplishes.   Normally, the legal minimum wage actually trails the market determined minimum wage.  So when a new minimum wage is set there is normally very little effect seen.   However, it is a different story if the legally required minimum wage exceeds the market OR if there is a downturn in the economy.    In those cases, we can expect to see the same mechanisms in play as our extreme example above, meaning increases in inflation and / or unemployment.

I don't claim to have all of the answers and I understand that in talking about those making minimum wage, we are generally talking about the most vulnerable in our society.   Still, one has to wonder how much we are helping this most vulnerable group if we are enacting laws that increase the costs of goods and services for them and decreases the number of jobs available to them.

With the US going on nearly 3 years of unemployment rates near 10%, I wonder what would happen if the minimum wage was decreased instead of increased.   People could still decide not to work for that wage.   But perhaps there would be some people who have been unable to find work who would welcome having a job.   

Politically, I do not think that this can happen.   Minimum wage laws tend to be politically popular. The public views them as their legislators looking out for them.   Legislators also seem to like them.  And there is at least the perception that in having a minimum wage, we have also created a floor for a minimum income.   In reality that is not the case.

Just my opinion.   Have a great day.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

BTW - If you would like an opinion or some help regarding real estate, I would love to help.  I specialize in Commercial Real Estate and work with Landlords, Tenants, Buyers, Sellers and Investors.   I handle Office, Industrial, Land, Investment and Retail Properties.     I am licensed in KY and IN. 

Also, I am sure that my managing broker would appreciate me clarifying that the views expressed here are my own and are not necessarily shared by Commonwealth Commercial Real Estate, its brokers, agents, or employees (other than me, of course.)   If you would like, you are free to make a comment and different opinions are welcome.   What is not welcome is inappropriate remarks and I will exercise my right to delete any content which I find objectionable. 

Tuesday, November 15, 2011

The Pursuit of Happiness

It seems that in American society, we are consumed with the pursuit of happiness, a curiously constitutionally guaranteed right. How we pursue happiness, is up to us. Unfortunately, there is no clear plan to attain it and no guarantee we will find it.

I know people who in that pursuit, have turned to feng shui, acupuncture, acupressure, tuning forks, crystals, rocks and magnets. They buy new clothes, go on trips, send their kids to expensive schools that they cannot afford. If only they could build a new kitchen, if only they could have new carpet, if only they could buy new furniture, if only they could redecorate, if they only had a better job, if only their spouse made more money, if only they could start a multilevel marketing business, if only they could live on the beach...

The list goes on and on.

We are inundated with images of perfect people supposedly living perfect lives in absolute bliss.

So, why is that that some of the happiest people I know, come from modest means? Some have never even left their state, let alone traveled the world.

The truth is that happiness isn't something you will find outside of yourself. I won't claim that people won't feel a temporary high when they get a shiny new toy, but that feeling will fade. There will always be a near infinite number of things you do not have, no matter how much money you make. If you always focus on what you don't have, you will always feel shorted.

Happiness is something only you can find for yourself and in yourself. It's more about being grateful what you do have than attaining what you do not have.

Someone else might be able to make you miserable, but they cannot make you happy. That is up to you.

Stepping off my soapbox AND hoping that you have a happy day.

BTW - If you would like to TRY to find happiness through real estate, I am willing to give you a hand. (smile)  I am licensed in KY and IN and specialize in Commercial Real Estate.  I work with Buyers, Sellers, Landlords, Tenants and Investors and handle Office, Industrial, Land, Investment and Retail Properties.

ALSO, I am sure that my Primary Broker would appreciate me clarifying that the views presented here are my own and do not necessarily represent the opinions of Commonwealth Commercial Real Estate or any of its brokers, agents or employees (other than me, of course)  You are of course welcome to disagree and present your own opinion if you would like.  HOWEVER, you are not welcome to make inappropriate comments and I reserve the right to delete anything that I beleive would be offensive.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

Monday, November 14, 2011

What Marathon Training Taught me about Planning

Just a little more than a week ago, I finished my first marathon.   It was a thrilling experience largely due to the unbeleivable sense of accomplishment.    That said, I did not finish without some problems.   About mile three, I felt a hamstring start to heat up and by mile 5 and 1/2, my entire right leg was in full revolt, lit up from my rear end all the way down to my ankle.     At that point, I simply was not physically able to continue running and I had to stop and walk.   

My first thought was that I really wasn't sure I would be able to do another 21 miles.     As I walked, I considered my options and once I had a calm head, I realized that my training had prepared me to deal with problems during the race.  First thing to remember, it's not supposed to be easy, after all, it's a marathon.   Second thing to remember, in the months of training, I had similar problems and was able to work through them.   Third thing to remember, I never ever planned on winning the marathon, all I had to do was finish.  

After about a mile to a mile and a half, I tried a light jog and found that I could manage that.   A little while later, I found that  I could get back to a slow run but I slowed my overall pace by about 10% to 20%.   With these adjustments and a plan to run about 3 to 4 miles at a time followed by a half mile to a mile of walking for the duration, I was able to complete the marathon in 5:31:24.     Considering the difficulties I was having, I was thrilled with that time.

I never could have accomplished this at all without a plan. Starting out, I knew very little about marathons and even less about training for marathons.   Luckily, I knew a physical trainer who knew a lot about training and he put together a training schedule for me that lasted several months. 

I guess I could have put together some sort of marathon training plan on my own but I certainly would not have known the most efficient way to do it. Also, I'm not sure that a plan I put together could have prepared me for what to do if things went awry, as this plan did. I'm a pretty smart guy but that simply isn't my area of expertise.

Today, it seems that "do it yourself" is all the rage.   Everyone pumps their own gas.   Many people prefer to go through self serve check-out lines.   There are tons of books and videos and internet sites dedicated to helping us do things ourselves.    And while I have to admire a certain self reliance, I also think that (especially in my case), it can be easy to become a jack of all trades and master of none.  

We hear all the time about setting goals.   Setting this goal is crucial to knowing where you are going BUT to accomplish this goal, you have to follow up with a plan.   And sometimes, your best chance for success is working with someone who already has some expertise in this area.   For a physical challenge, it may be a physical trainer; for a business challenge, it may be a businessman or a CPA; for a legal challenge, it may be an attorney and of course for a real estate project, it may be a real estate broker.   Certainly, you may be able to do it on your own, but it may also be that your best chance for success is to have someone with that expertise give you a hand.  Food for thought.

Have a great day, all.  

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

BTW - if you need any help with real estate, give me a call.  I specialize in Commercial Real Estate and work with Landlords, Tenants, Buyers, Sellers and Investors.   I handle Office, Industrial, Land, Investment and Retail properties.  I am licensed in KY and IN.   OR, if you just want to shoot the breeze about marathon training, I am open to that as well.

Tuesday, November 8, 2011

Why Occupy Wall Street Matters

There are those, especially from conservative circles, that are quick to dismiss the Occupy Wall Street movement.  On the other hand, it would appear that the more liberal circles are trying to claim it for their own.   I am not sure that either of these approaches is wise.

After nearly 2 months, it is clear that the OWS is not simply a flash in the pan.  It is also clear that it has struck a chord and that there are a lot of people wanting to support it.  What is unclear is what OWS is really for or against.   There are those trying to co-opt the movement by claiming  that it supports their agenda but as far as anyone can tell, there is no real leadership and no clearly defined shared set of goals.

It is also clear that OWS is different from the movement which have occurred in other parts of the world.   In general, ignoring Oakland, the protests have been peaceful.  As far as I can tell, no one expects the OWS group to become violent.   It seems to me to be very different from the Arab Spring,

What is clear, is that there are a lot of people across the country who are unhappy, AND this includes more than just the OWS protesters.   I think that is why OWS has not died.  OWS is a tangible symbol of a country that is weary of difficult times.   For some that may be years of high unemployment, which resulted in someone in their family being laid off, perhaps multiple times.  For some, that may be years of war, where family members have been deployed or perhaps injured or killed.  For some, it may be the injustice of billions of dollars of tax bail outs which kept millionaires employed while some families faced foreclosure on their homes.  

Different parties may have different ideas as to the best way to resolve these hard times for our country but I believe that whoever leads us out of this morass will have to satisfy the country at large that they hear their concerns and understand their fears and pain in order to be successful.

Anyway, that is just my opinion.  You may of course feel free to disagree and you are free to post comments expressing your point of view.  What you are not free to do however, is to post inappropriate or offensive comments.  Should I see any such comments, I reserve my right to delete them.

Thanks, everyone. Have a great day and be sure to get out to vote today!

By the way, if you would like an opinion on Commercial Real Estate, I would love to help you.  I work with Landlords, Tenants, Buyers and Sellers.  I handle Office, Industrial, Land, Investment and Retail properties.  I am licensed in Kentucky and Indiana and I specialize in Commercial Real Estate.

ALSO, I am sure that my managing broker would appreciate me stating that the opinions presented here are mine alone and do not necessarily represent the opinions of Commonwealth Commercial Real Estate, its brokers, agents or employees (other than me, of course).  

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

Thursday, November 3, 2011

Turn Around for Land?

There was a time when a Commercial Real Estate Broker could make a decent living selling nothing but land.   These days there has been so little Development that there has been very little demand for land.   As noted in my most recent KCREA 3rd Quarter Review, the little land which has sold has largely been smaller parcels which are not ready for commercial development.  

Lately, however, I have noticed lately that we are begining to have some interest in land again.   Consider the following:
  • Beginning in the Summer, I had some calls on some land that I have listed next to Jefferson Mall.  
  • I had some brokers calling who were working with some restaurants looking for possible sites in the county.   
  • Another site in the Jefferson Mall area is beginning development for what is rumored to be one big box retailer and 2 or 3 stand alone restaurants. 
  • I had a call from a broker working with an Apartment developer and an Assisted Living developer looking for sites.   
  • Zappos in Bullitt County reportedly is looking at a couple of 100 to 150 acre sites for their expansion
Although things are still a long way from where we were a few years ago, I presently have offers on two of my land listings.   I'm not sure that we have seen enough activity to call it a trend but at least there are some hopeful signs that a turn around in land could be coming.

By the way, if you need help with Land or with any other aspect of Commercial Real Estate, please give me a call.  I work with Buyers, Sellers, Landlords and Tenants with Office, Industrial, Land, Investment and Retail Properties.   I am licensed in Kentucky and Indiana.     I would love to help.

Have a great day, everyone.   Thanks!

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

Tuesday, November 1, 2011

Scary things in Commercial Real Estate

A normal individual might be scared out of their wits by seeing Paranormal Activity 3.  A Commercial Real Estate Broker however might be terrified by the following -

1.       Un-zoned Raw Land listings – Right now, these are some of the hardest things to sell in Commercial Real Estate.    Prices are down about 40% and buyers are not inclined to buy property that will require 9 to 18 months to rezone let alone property which has no utilities or infrastructure.   

2.       Desperate Sellers – While a motivated Seller might be a good thing, a desperate Seller is another story.   Desperate Sellers can be completely irrational.   They can be very difficult to deal with and can pose a much higher risk of liability.

3.       Bad Phase I Reports – Nothing can kill a deal like a bad Phase I Environmental Report.   It is normally just good policy to have a Phase I inspection on a commercial property.   When it comes back with a problem, everything can fall apart. 

4.       Unpaid Real Estate Taxes – This is often a sign that the property is distressed.   Distressed properties have their own set of problems which have to be addressed.   These transactions require extra care for all parties in order to be successful.

5.       Over-zealous Attorneys – It is always good advice to have your client run things past their attorney.  That said, sometimes good legal advice is not good real estate advice.   While you certainly want your attorney to protect you if he goes overboard, it can make it impossible to every finish the transaction.

6.       Bad Appraisals  – When a Seller immediately offers to show you their appraisal, that is usually a sign that they realize that it is overpriced and want to try to persuade you that it is not.    Bad appraisals create all sorts of problems.    I have seen appraisals that included square footage that on floors that did not exist and listed comparables that did not exist.   But once a Seller sees a high appraisal, it is nearly impossible to overcome.  
Certainly, there are other scary things.  Maybe you can share some that have happened to you.   Hope everyone had a great Halloween last night.    Let me know if you need any help with Commercial Real Estate.  I work with Buyers, Sellers, Landlords, Tenants, and Investors and handle Office, Industrial, Land, Investment and Retail properties.
Have a great day.
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299